With the state facing a $3.5-billion deficit, it remains unclear how Norwalk and other communities can be spared cuts in state aid in Gov.-Elect Dannel P. Malloy's forthcoming budget.

Newly named state budget Director Benjamin Barnes said Friday that the budget will contain "significant amount of shared pain." But the former Malloy aide also said the new administration "will not shred the safety net" for the needy nor turn to local taxpayers to balance the budget and eliminate the projected deficit.

That could bode well for Norwalk and other municipalities.

"I come from local government and I'm extremely sympathetic to the fact that we cannot balance the budget on the backs of local taxpayers. That said, I also refer back to my earlier comment on shared sacrifice," Barnes said. But "we are certainly not going to eliminate billions of dollars in local aid for education or the local government. That would do more harm than good."

Malloy will take office in January and must present his proposed budget to the General Assembly in February.

Norwalk, like other municipalities, relies on state aid from Hartford when developing its annual operating budget. For fiscal year 2011, Norwalk will receive $14,270,043 in education and non-education related grants from Hartford. That's up 4.9 percent from the prior fiscal year but 0.3 percent less than what was originally appropriated, according to an analysis by the Connecticut Conference of Municipalities, which represents 169 towns and cities statewide.

State aid ranges from annual Education Cost Sharing formula grants to the Payment in Lieu of Taxes Program, in which towns and cities are partly compensated for taxes not paid on state and other public properties.

"I will do everything in my power to sustain ECS," said Barnes of the education grant. But "about $300 million of the ECS grant has been covered by one-time federal stimulus. I hope we can make communities whole (when that isn't available)."

The Connecticut Conference of Municipalities has been in communication with Gov.-Elect Malloy's office, according to CCM spokesman Kevin Maloney.

"We're certainly trying to communicate that there be no cuts in state assistance to towns, and that any cuts would be a false economy. Any cuts would simply pass the state budget deficit onto cities and town and property taxpayers," Maloney said. "We've been in communication with the governor (elect's) office, so they are aware of the issue."

Like other chief-elected officials , Norwalk Mayor Richard A. Moccia each year has asked Hartford to at least maintain state aid to the city at its current level. He and other officials also remind that the city and other Fairfield County communities send far more dollars to Hartford than they receive back.

Last Monday, outgoing Gov. M. Jodi Rell presented her transition budget to the incoming administration. The 94-page document reflects the costs of maintaining current state government services, as well as recommendations for addressing the estimated $3.4 million budget deficit for fiscal year 2012-13.

"This current services budget provides the price tag of state government through fiscal year 2012 if no changes are made at all," Rell said. " Of course, with $3.4 billion deficit looming, changes -- and painful choices -- will have to be made."

In response, Malloy said he would look closely at the material provided by Rell, as his administration puts together its budget for submission to the General Assembly in February.

"That budget will be honest, clear, fair and balanced. It will be a tough budget, to be sure," Malloy said.

"These are unprecedented fiscal times - the most challenging we've faced in recent memory. As I've been saying for months, there will be a lot of sacrifice in the budget, but it will be shared sacrifice. And it will start with the right-sizing of state government. Ultimately, my goal is to make this a jobs budget, designed to get Connecticut growing again."

Barnes served eight years in the Malloy administration in Stamford, including as director of administration and director of public safety, health and welfare.